Latest news with #DineshThakkar
Mint
2 days ago
- Business
- Mint
New rule lets brokers expand beyond stocks and derivatives
Mumbai: New-age investors will now be able to buy insurance or get credit of all kinds, apart from just trading in stocks and derivatives, from stock-market intermediaries such as brokers. The ministry of finance has amended certain provisions of the Securities Contracts (Regulation) Rule, allowing brokers to invest their own surplus funds in businesses apart from capital market-related activity, which was barred earlier. For instance, in real estate or non-banking finance companies, so long as there is no liability on the broker making such investments. The changes were highlighted by a National Stock Exchange (NSE) circular on Tuesday. It will let new-age investors tap brokers as a one-stop shop for all needs, while increasing the ease of doing business for market intermediaries. Dinesh Thakkar, chairman & managing director at Angel One, the third largest retail broking house in the country after Groww and Zerodha, summed up the significance of the amendment: offering multiple services on an integrated platform. Also read | NSE gets Sebi nod to launch electricity derivatives 'With the finance ministry's clarification, brokers can now deploy surplus capital into businesses beyond broking—so long as client assets remain untouched and no personal liability is assumed," he said. "This enables us to go beyond distribution—into manufacturing products that may not be Sebi-regulated but are essential to completing a customer's financial journey: all forms of credit, insurance, and more," Thakkar said. 'The digitally savvy Indian customer is no longer looking for piecemeal solutions; they expect a complete financial experience, offered seamlessly on an integrated platform. This is our opportunity to build exactly that." The amendments to provisions of Rule 8 of the SCRR 1957 clarify that investments made by brokers will not be construed as "business" if they don't involve client funds or securities or relate to arrangements that create a financial liability for the broker. 'Business' implies that brokers have either used their client funds or securities for such investments or that the investment would impose a personal liability on the broker beyond the shareholding in a firm. To be sure, these rules are meant to ring-fence client funds and prevent brokers from taking on liabilities which could impact the broking business, creating systemic risks. Recalibration of regulatory perimeter Given the changing nature of financial services wherein new-age investors prefer platforms that offer a full range of financial services, the amendments are a "recalibration" of the "regulatory perimeter" for brokers, said Sandeep Parekh, founder of Finsec Law Advisors. "The new rule issued by the ministry of finance both clarifies and expands the scope of what a broker can do outside of broking," Parekh said. 'Given the increasingly integrated bouquet of services global brokers provide, it was time that the overly strict interpretation by Sebi and NSE was diluted so that more services could be provided by brokers without jeopardising client interest." Prior to the amendments by the department of economic affairs (DEA), these rules stated that a broker can only act as an agent, and not a principal, in the securities and commodities derivatives business; and he should not serve either as a principal or employee of any business apart from the aforesaid businesses, where he acts only as an agent. Also read | Retail investors want a piece of NSE. But no one is selling A principal refers to an owner or a person having substantial ownership within a firm. An agent is a person authorised to act on behalf of another individual or firm. NSE's clarificatory circular on 7 January 2022 stated, "...Members are not permitted to engage in any business or activities or transactions, directly or indirectly, other than that of securities or commodity derivative, except as a broker or agent not involving any personal financial liability." The circular also barred brokers from investing in businesses such as NBFC and real estate, among others, which were not incidental to or consequential upon the securities or commodity derivatives business. Kotak Securities, a subsidiary of the Kotak Mahindra Bank, had petitioned the Bombay High Court against the circular, which necessitated divesting its stake in a non-banking financial services company. It had invested 49% in car financier Kotak Mahindra Prime, also a subsidiary of its parent bank, well before NSE's clarificatory circular. The outcome of the case is awaited. A Kotak Securities official declined to comment as the matter was "sub juidce", while queries emailed to NSE remained unanswered until press time. Also read | Nifty 50 reclaims 25,000, next hurdle at 25,300
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Business Standard
05-06-2025
- Business
- Business Standard
Here's why Angel One share price is buzzing in trade on Thursday, June 5
Angel One shares were in demand after announcing the May 2025 business update. The company's client base surged 23.83 per cent Y-o-Y to 31.95 million in May 2025, as against 23.83 million in May 2024 Angel One share price today SI Reporter New Delhi Angel One share price: Angel One shares were buzzing in trade on Thursday, June 5, 2025, with the stock rising up to 3.83 per cent to hit an intraday high of ₹3,249 per share. At 12:50 PM, Angel One shares continued to trade near day's high, up 3.38 per cent at ₹3,234.95 per share. In comparison, BSE Sensex was trading 0.76 per cent higher at 81,616.69 levels. What drove Angel One shares higher today? Angel One shares were in demand after announcing the May 2025 business update. The company's client base surged 23.83 per cent year-on-year (Y-o-Y) to 31.95 million in May 2025, as against 23.83 million in the same month last year (May 2024). Its average client funding book zoomed 46.2 per cent Y-o-Y to ₹4,005 crore in May 2025, from ₹2,740 crore in May 2024. The company's unique MFs SIP registered grew 32.8 per cent annually to 6,28,280 in May 2025, from 4,73,220 in May 2024. Angel One's cash average daily turnover (ADTO) rose 4.2 per cent annually to ₹8,600 crore, from ₹8,300 crore a year ago. Its Commodity ADTO climbed 47.2 per cent Y-o-Y to ₹74,500 crore in May 2025, from ₹50,600 crore in May 2024. The Cash Turnover Market Share also expanded 91 basis points (bps) to 18 per cent in May 2025, from 17.1 per cent in May 2024. However, gross client acquisition fell 43.1 per cent to 0.50 million in May 2025, from 0.88 million in May 2024. Average daily orders dropped 23.4 per cent annually to 5.79 million in May 2025, from 7.56 million in May 2024. It, however, surged 3.2 per cent month-on-month (M-o-M) from 5.61 million. Catch Stock Market Updates Today LIVE Angel One Q4 results The company's total revenue from operations dropped 22.1 per cent Y-o-Y to ₹1,056 crore, as against ₹1,357.3 crore a year ago. Profit after tax (PAT) plunged 48.7 per cent Y-o-Y to ₹174.5 crore in Q4FY25, from ₹399.9 crore in Q4FY24. At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) plummeted 44 per cent annually to ₹264.3 crore in Q4FY25, from ₹475.5 crore in Q4FY24. Angel One's net broking revenue fell around 28 per cent to ₹490.6 crore as against ₹685.6 crore in the March 2024 quarter. Angel One dividend Angel One's board of directors approved and recommended a final dividend of ₹26 per share for FY25. About Angel One Established in 1996, Angel One (formerly Angel Broking) is among the leading retail stockbroking and financial services firms in India, founded and chaired by Dinesh Thakkar. The company provides a broad suite of offerings, including equities, derivatives, mutual funds, insurance, and personal loans. As of March 2024, Angel One serves a client base of 3.1 crore, with total assets under management (AUM) exceeding ₹3,700 crore.
Economic Times
21-04-2025
- Business
- Economic Times
Angel One shares rally 5% on announcing Rs 26 dividend despite Q4 profit slump. Here's what brokerages say
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Angel One climbed as much as 5.4% on Monday to Rs 2,483.75 on the BSE after the stockbroker firm announced a final dividend of Rs 26 per share for FY25, despite posting a sharp decline in quarterly profit and broking firm's consolidated net profit for the January–March quarter fell 48.7% year-on-year to Rs 174.5 crore, while revenue declined 22.2% to Rs 1,056 crore. Operating margins also contracted to 32.5% from 39% in the same period a year ago, with EBITDA dropping 35.3% to Rs 342.8 Securities downgraded the stock to "Add" from "Buy" and cut its target price to Rs 2,500 from Rs 3,000, citing an expected earnings trough in the first half of FY26 due to weak market conditions and regulatory headwinds. The revised target implies a potential upside of about 0.7% from Monday's brokerage said it expects a rebound in Angel One's earnings with a projected PAT of Rs 8.3 billion in FY26, and Rs 12.5 billion in FY27. Over the longer term, ICICI Securities sees potential for significant recovery, projecting a PAT of Rs 15 billion by Securities, however, maintained a 'Buy' rating and set a target price of Rs 2,850, implying a potential upside of nearly 15% from current levels. 'Net revenue and PAT collapsed 31% and 60% versus Q2 FY25, while high acquisition costs and IPL-related spends also took a toll,' HDFC Securities said in a research note. 'We believe F&O activity has now stabilised and is likely to start improving on a sequential basis.'Angel One's Q4 performance reflected the full impact of regulatory changes in the equity derivatives segment, with average daily orders declining to 5.3 million from a peak of 8.8 million in June 2024. F&O orders dropped 25.6% quarter-on-quarter, according to ICICI company also reported a 5.5% sequential drop in its margin trading funding (MTF) book to Rs 38.5 billion and a 10.2% fall in total borrowings to Rs 33.8 billion. Interest income declined 3.3% quarter-on-quarter to Rs 3.4 the weak quarter, Angel One's leadership highlighted strong annual performance. Chairman and Managing Director Dinesh Thakkar said FY25 was a 'transformative year,' while Group CEO Ambarish Kenghe noted the company achieved record client additions and its highest-ever annual One's board has recommended the Rs 26 per share final dividend, to be paid within 30 days of the Annual General Meeting. The stock remains down 29% from its 52-week high of Rs 3,502.60 hit in December.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
21-04-2025
- Business
- Time of India
Angel One shares rally 5% on announcing Rs 26 dividend despite Q4 profit slump. Here's what brokerages say
Shares of Angel One climbed as much as 5.4% on Monday to Rs 2,483.75 on the BSE after the stockbroker firm announced a final dividend of Rs 26 per share for FY25, despite posting a sharp decline in quarterly profit and revenue. The broking firm's consolidated net profit for the January–March quarter fell 48.7% year-on-year to Rs 174.5 crore, while revenue declined 22.2% to Rs 1,056 crore. Operating margins also contracted to 32.5% from 39% in the same period a year ago, with EBITDA dropping 35.3% to Rs 342.8 crore. ICICI Securities downgraded the stock to "Add" from "Buy" and cut its target price to Rs 2,500 from Rs 3,000, citing an expected earnings trough in the first half of FY26 due to weak market conditions and regulatory headwinds. The revised target implies a potential upside of about 0.7% from Monday's high. The brokerage said it expects a rebound in Angel One's earnings with a projected PAT of Rs 8.3 billion in FY26, and Rs 12.5 billion in FY27. Over the longer term, ICICI Securities sees potential for significant recovery, projecting a PAT of Rs 15 billion by FY27E. HDFC Securities, however, maintained a 'Buy' rating and set a target price of Rs 2,850, implying a potential upside of nearly 15% from current levels. 'Net revenue and PAT collapsed 31% and 60% versus Q2 FY25, while high acquisition costs and IPL-related spends also took a toll,' HDFC Securities said in a research note. 'We believe F&O activity has now stabilised and is likely to start improving on a sequential basis.' Angel One's Q4 performance reflected the full impact of regulatory changes in the equity derivatives segment, with average daily orders declining to 5.3 million from a peak of 8.8 million in June 2024. F&O orders dropped 25.6% quarter-on-quarter, according to ICICI Securities. The company also reported a 5.5% sequential drop in its margin trading funding (MTF) book to Rs 38.5 billion and a 10.2% fall in total borrowings to Rs 33.8 billion. Interest income declined 3.3% quarter-on-quarter to Rs 3.4 billion. Despite the weak quarter, Angel One's leadership highlighted strong annual performance. Chairman and Managing Director Dinesh Thakkar said FY25 was a 'transformative year,' while Group CEO Ambarish Kenghe noted the company achieved record client additions and its highest-ever annual profit. Angel One's board has recommended the Rs 26 per share final dividend, to be paid within 30 days of the Annual General Meeting. The stock remains down 29% from its 52-week high of Rs 3,502.60 hit in December. Also read | Angel One shares slump 6% after reporting 49% YoY drop in Q4 PAT ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
